Bitcoin is at about $6,700 with a daily trading volume of $4.47 billion. However, for a bullish reversal, it needs to first cross $7,400 from September high. Meanwhile, with the $2.4 trillion asset manager fidelity investments making an official entry into the crypto industry has sparked a new institutional enthusiasm that according to Mike Novogratz will still take time to fully realize.
Bitcoin yet again stable at $6,700
After reaching $7,700 briefly yesterday, Bitcoin has taken a drop and come to rest around $6,750. At the time of writing, the leading cryptocurrency has been trading at $6,749 while being in the red. The daily trading volume is still keeping a good pace at $4.47 billion.
In order to confirm the bullish reversal, Bitcoin has to first clear the September high of $7,400. However, a big news in the form of fidelity investments, a $2.4 trillion worth of asset manager joining the crypto space hit the market today. Moreover, Bakkt CEO Adam White in its interview with Fortune stated the institutions are hungrier than ever.
Q1 of 2019 to see the institutional flow in crypto assets
Mike Novogratz of Galaxy Digitals shared how Fidelity’s move into the crypto world can work as a catalyst to bring huge demand from institutions:
“One of the things that will get institutional investors involved in crypto is custody solutions… And Fidelity is coming out with a world-class custody solution that is aimed at institutions, so that’s a box that gets checked and [that is] something that gets taken [an institution’s] list.”
Novogratz believes the entry of these big names into crypto space will get crypto assets to be qualified as a safe investment option.
In his previous interview, he had stated institutional FOMO will permeate the market with the introduction of crypto-friendly infrastructures. And in the last few days we saw, Yale, ErisX, and now Fidelity announcing their crypto plans.
However, it will take time, as Novogratz points out:
“Fidelity announced their business today and it’ll probably be up and running in January, or Q1 [of 2019]. And then you have to run some water through the pipes, so my guess is you will start seeing institutional flows into pure crypto assets in the late first quarter or early second quarter.”
Well, as he states that it’s irrational to expect the crypto industry to “graduate high school tomorrow and get its Ph.D. the next day,” the plans are being led down and it will take time for this market to grow and evolve.